In recent weeks we have seen the tax reports of various smartphone and mobile manufacturers. We have seen Samsung booming as Huawei, LG are making profits but not selling the G6 and many others. Now is the time to look at the performance of Sony and its Sony Xperia during the last fiscal period ending late June.
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With two state-of-the-art Android smartphones a year, typically due in March and September, the Japanese brand has long been drifting in this increasingly competitive market. However, we finally have positive signs from this Asian giant.
Sony has seen revenue increase but not thanks to Xperia's
In the last fiscal report for the quarterly period ending June 30, 2017 we saw Sony's fiscal outlook and the news is encouraging.
Revenues rose 15% compared to the same period last year but this figure is mainly due to cuts made in the Research and Development department, among others. The brand also points to a reduction in operating costs as one of the causes for increased profits.
Incidentally, looking at the figures from Sony's mobile department, revenues from device sales fell by around 3%, attributing the brand to this drop in "changes in the production of several smartphone lines." The brand has sold more mid-range equipment like the XA1 and XA1 Ultra than any of its offerings.
Sony expects to sell 16.5 million Xperia's in 2017
Just looking at the number of smartphones sold during this last fiscal quarter, we see that Sony has been able to sell 3.4 million units.
This represents a 10% increase over the same period in 2016. It should also be noted that Sony expects to sell 16.5 million pieces of equipment by the end of the year, which is its stated goal.
Given the brand's recent track record in this competitive mobile market, it is with some surprise and caution that we have seen and analyzed these values. They are positive, yes, but they do raise some concerns.
Increased revenues were generated by cuts in research and development of new technologies. The impact of this will have on the development of the upcoming high-end Sony Xperia.
On the other hand, although they sell more Xperia's than before, they are mostly mid-range, a type of product that represents a slim profit margin for the brand.
I personally believe that the strategy of launching two high-end smartphones a year only wears out the brand, as well as saturating the market with nearly equal devices. It's not without some hurt that I say it but I don't feel that following this path Sony has a bright future with its Xperia. If only you're wrong.
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And you, do you use a Sony Xperia smartphone? How can the brand return to its peak of popularity in 2014?
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